PROJECT REPORT FOR DAIRY FARM WITH 20 CB HF/CB JERSEY COWS

MODEL APICOL PROJECT (To be updated soon)

This model project report for dairy farm with 20 cows is based on the following assumption:

1. Freshly calved crossbred Jersey/HF cows in 1st or 2nd lactation will be purchased in two batches of two animals each at an interval of 5 to 6 months.2. Availability of 4 acres of land is prerequisite for the project4.Fodder cultivation considered in 4-acre land, Two crops considered per year.5. Cow dung produced will be utilized as Manure for fodder cultivation.6. Cost of rearing calves is not considered as it will be nullified by their sale value 7. In case of death cow, the new cow will be purchased from insurance claim money8. The scheme is workable on the above guidelines if run by the dairy farmer on scientific lines. Avail Bank loan and subsidy– Subsidy limit under MKUY is 40% of the fixed capital (excluding the cost of the land) subject to a limit of 50.00 lakh for general male category. Subsidy is 50% of the fixed capital limited to 50.00 lakh for SC/ST/Women/Graduates of Agriculture and Allied Disciplines for this type project. Farmer/entrepreneur can apply through GO Sugam Portal. Net annual profit from the project should be more than 2 Lakh for individual & more than one lakh for SHG groups.

Housing for cows –Floor –Pucca, strong concrete cemented, impervious to moisture, and have slope 1 in 60 towards the gutter. Plinth should be 2ft. higher than ground. Walls-3ft. high lengthwise brick wall on sides, End wall should be solid made of bricks. Roof– 14-16ft. high at the center and 8ft. high on the side wall .there should be hangover 3ft beyond the wall to prevent rainwater from entering cow shade. The roof should be of asbestos, cement asbestos, or tile. the thatched roof can replace asbestos in low-cost housing.

Daily feed requirement and feed chart

Feeding requirement and expenditure is given in Feed chart for cow

Item	FEEDING STUFF	COST/KG Rs.	During lactation period		During dry period
			Quantity (kg)	Cost (Rs.)	Quantity (kg)	Cost (Rs.)
i	Concentrate feed	25	6	150	1.75	43.75
ii	Green fodder	–	20	Home grown	15	Home grown
iii	Dry fodder	5	5	25	5	25
	Total		28.5	175	21.5	68.75

Total lactation day and dry day for 20 cows dairy farm is given in lactation chart for 20 cows

Sr.No		Particulars				Years
				I	II	III	IV		V	Vi	vii
i)		Lactation Days
a)		First batch		3000	3000	3000	3000		3000	3000	3000
b)		Second batch		1800	3000	3000	3000		3000	3000	3000
		Total		4800	6000	6000	6000		6000	6000	6000
ii)		Dry Days
a)		First batch		650	650	650	650		650	650	650
b)		Second batch		–	650	650	650		650	650	650
		Total		650	1300	1300	1300		1300	1300	1300
			. Techno economic parameter
	Type of Animal							Indigenous Milch breed/ Crossbred/CB HF/Jersey Cow
	No. of Animals							20
	Cost of Animal (Rs./animal) including transportation & insurance							90000/cow
	Milk Yield (litre/day)							12-14
	Floor space (sqft) per adult animal							60
	Floor space (sqft) per calf							20
	Cost of construction per sqft (Rs.)							400
	Cost of equipment per animal (Rs.)							2000
	Cost of fodder cultivation (Rs./acre/season)							6000
	Insurance premium (% per annum)							5
	Veterinary aid/animal/ year (Rs.)							2000
	Cost of concentrate feed (Rs./kg)							25
	Labour part time							9000 per month
	Cost of dry fodder (Rs./kg)							5
	Sale price of milk							40
	Rate of interest (%)							11
	Repayment period (years)							6
	Sale price of gunny bags (Rs. per bag)							20
	Lactation days							300
	Dry days							65

ECONOMICS OF DAIRY FARMING WITH 20 HF/CB JERSEY COWS

	Project cost and bank loan	Cost. In Rs.
	Capital cost
1.	Land development	30000
	Fencing	40000
2.	Cow shed for 20 cows 60sq.ft/cow @400/sqft	480000
3.	Calf pen for 20 calves 20 sq.ft./calf @400/sq.ft.	120000
4.	One room 10” x 10” for keeping implements. And feed @600/sq.ft	60000
5.	Office room of 10” x 10”@ 600/sqft	60000
6.	Electric connection and electrical installation to the farm	10000
7.	Bore well with pump set, pipeline and over head tank	120000
8.	Cost of 1 Fodder Chaff Cutter with Motor	25000
9.	Cost of milking machine with two can cluster	50000
10.	Milk Cans 40 Liter 10 Nos	20000
11.	Cost of one refrigerator for storage of medicines vaccines with voltage stabilizer	15000
12.	Cost of 20 CB jersey / CB HF Cows with minimum average 12 liter milk yield /day including transportation and insurance @ 90000/cow	1800000
	Total	2800000
Recurring cost to be capitalized
I.	Cost of feed for first batch of 10 cows for one month as per feed chart	52500
II.	Cost of fodder cultivation in 4 acres of land For one season	48000
III.	Salary of two labourer for one month	24000
IV.	Cost of medicine vaccine, electricity for the first month for first batch of 10 cows & Misc expenditure for one month	20000
V.	Contingency	15500
	Total recurring expenditure
	TOTAL PROJECT COST	160000 2960000
	Margin Money @25% of the project cost	740000
	Bank loan @ 75% of project cost	Rs. 2220000

CASH FLOW ANALYSIS.	Year
CASH FLOW ANALYSIS.	1	2	3	4	5	6	7
Feeding during lactation period vide yearly lactation days and feed cost as per chart	840000	1050000	1050000	1050000	1050000	1050000	1050000
Feeding during dry period vide dry days and feed cost as per feed chart enclosed	44687.5	89375	89375	89375	89375	89375	89375
Medicine vaccine veterinary aid	40000	40000	40000	40000	40000	40000	40000
Insurance @5% of animal cost /year		45000	45000	45000	45000	45000	45000
Cost of fodder cultivation For two session	96000	96000	96000	96000	96000	96000	96000
Labour salary	108000	108000	108000	108000	108000	108000	108000
other miscellaneous expenditure including electricity	50000	50000	50000	50000	50000	50000	50000
Total	1178688	1478375	1478375	1478375	1478375	1478375	1478375
INCOME
Sale of milk @Rs.40/liter during lactation days with average milk 12 liter yield /cow day	2304000	2880000	2880000	2880000	2880000	2880000	2880000
Manure will be utilized in own farm
Value of closing stock of 20 cows 2@15000							300000
Value of building(Depreciation on building@10%/year)							288000
Value of equipment (Depreciation on equipment @15%/year)							0
Total income	2304000	2880000	2880000	2880000	2880000	2880000	3468000
Gross profit	1125313	1401625	1401625	1401625	1401625	1401625	1989625

Calculation of BCR & IRR

	1	2	3	4	5	6	7
Capital Costs	2800000
Recurring Cost	1178688	1478375	1478375	1478375	1478375	1478375	1478375
Total Costs	3978688	1478375	1478375	1478375	1478375	1478375	1478375
Benefit	2304000	2880000	2880000	2880000	2880000	2880000	3468000
Net Benefit	-1674688	1401625	1401625	1401625	1401625	1401625	1989625

Repayment of loan- Repayment of loan will start six month after the availing loan and will be completed within six Years Loan amount Rs2220000 grace period 6 moth Total loan at the end of grace period-2220000+ interest122100=2342100

Sl no	Financial indicators			Estimated value		Preferred value
1	Net Present Worth (NPW) @ 15% DF			2883579.40		Should be +ve
2	Benefit Cost Ratio(BCR)			1.37:1		>1
3	Internal Rate of return (IRR)			39.308		>15%
4	DSCR			2.71		>1.5
S.No		Monthly Installment	Interest		Principal		Balance
0							2342100
1		44580	21469		23110		2318990
2		44580	21257		23322		2295667
3		44580	21044		23536		2272131
4		44580	20828		23752		2248379
5		44580	20610		23970		2224410
6		44580	20390		24189		2200220
7		44580	20169		24411		2175809
8		44580	19945		24635		2151175
9		44580	19719		24861		2126314
10		44580	19491		25089		2101225
11		44580	19261		25318		2075907
12		44580	19029		25551		2050356
13		44580	18795		25785		2024572
14		44580	18559		26021		1998550
15		44580	18320		26260		1972291
16		44580	18079		26500		1945790
17		44580	17836		26743		1919047
18		44580	17591		26988		1892059
19		44580	17344		27236		1864823
20		44580	17094		27486		1837337
21		44580	16842		27737		1809600
22		44580	16588		27992		1781608
23		44580	16331		28248		1753360
24		44580	16072		28507		1724853
25		44580	15811		28769		1696084
26		44580	15547		29032		1667052
27		44580	15281		29298		1637753
28		44580	15013		29567		1608186
29		44580	14742		29838		1578348
30		44580	14468		30112		1548237
31		44580	14192		30388		1517849
32		44580	13914		30666		1487183
33		44580	13633		30947		1456236
34		44580	13349		31231		1425005
35		44580	13063		31517		1393488
36		44580	12774		31806		1361682
37		44580	12482		32098		1329584
38		44580	12188		32392		1297192
39		44580	11891		32689		1264504
40		44580	11591		32988		1231515
41		44580	11289		33291		1198224
42		44580	10984		33596		1164628
43		44580	10676		33904		1130724
44		44580	10365		34215		1096510
45		44580	10051		34528		1061981
46		44580	9735		34845		1027136
47		44580	9415		35164		991972
48		44580	9093		35487		956485
49		44580	8768		35812		920673
50		44580	8440		36140		884533
51		44580	8108		36471		848062
52		44580	7774		36806		811256
53		44580	7437		37143		774113
54		44580	7096		37484		736629
55		44580	6752		37827		698802
56		44580	6406		38174		660628
57		44580	6056		38524		622104
58		44580	5703		38877		583227
59		44580	5346		39233		543993
60		44580	4987		39593		504400
61		44580	4624		39956		464444
62		44580	4257		40322		424122
63		44580	3888		40692		383430
64		44580	3515		41065		342365
65		44580	3138		41441		300923
66		44580	2758		41821		259102
67		44580	2375		42205		216898
68		44580	1988		42591		174306
69		44580	1598		42982		131324
70		44580	1204		43376		87948
71		44580	806		43774		44175
72			405		44175		0

DISCLAIMER:-The views expressed in this model project are advisory in nature. This website assumes no financial liability for anyone using this project report for any purpose.